Employee Dishonesty – A Concern for Every Employer

September 19, 2013

A recent report issued by the association of Certified Fraud Examiners places the cost of employee fraud at 7% of annual revenues. Employers with less than 100 employees saw a median loss of $200,000 according to the ACFE.

Another study performed by the Institute for Corporate Productivity and HR.com showed that 20% of all employers have some form of employee fraud. Both reports state that one of the contributing factors is the current economic downturn. Safe Harbor Insurance has all the tools to help identify the critical exposures and help design a fraud prevention plan and can provide employee dishonesty insurance to cover your business.

Here are some of the most common types of dishonesty claims:

Theft of inventory– This is commonly known as shrinkage of inventory. It is not limited to just materials or goods, it also applies to office supplies and even office equipment.

Vendor kickbacks– Employees set up over payments from vendors then receive payments in cash or in the form of goods, services, or trips.